Respect for human rights

The Shin-Etsu Chemical Group supports the Universal Declaration of Human Rights. At the same time, we respect basic human rights in accordance with the core labor standards of the International Labour Organization (ILO). We conduct our business based on the constant respect for human rights at our locations around the world. In May 2019, we compiled this policy into the "Human Rights Policy", thoroughly implemented it within the Group, and disseminated it to public. In May 2024, in light of changes in the social environment surrounding human rights and with the approval of the Managing Directors’ Meeting attended by all directors, audit & supervisory board members and corporate officers, we reviewed and revised the Human Rights Policy based on the UN Guiding Principles on Business and Human Rights.

In addition, in order to confirm the status of compliance with our Human Rights Policy, we conduct an annual survey of our consolidated companies regarding items related to respecting human rights^*1, labor management, and whether employment is properly implemented in accordance with the laws and regulations of each country and region. Furthermore, we consider human rights impacts on local communities when building new plants.

The Human Rights Due Diligence Subcommittee established within the Sustainability Committee and the Shin-Etsu Chemical’s Human Rights Enlightenment Promotion Committee play a central role in promoting overall human rights due diligence based on the UN Guiding Principles on Business and Human Rights. The subcommittee formulates human rights policies, conducts human rights risk surveys for the Group, identifies priority human rights risk issues, and the establishment and maintenance of a system for consulting and reporting on human rights in cooperation with relevant departments.

Furthermore, the company is a member of both the Industrial Federation for Human Rights, Tokyo and the Corporate Federation for Dowa and Human Rights Issue, Osaka. We discover human rights developments and obtain latest information through federation activities and training sessions held by administrative organizations to promote awareness of human rights.

In December 2019, we began conducting human rights risk surveys with all Group companies to identify human rights risks in the Group's value chain. As a result, we were able to confirm that no serious violations of human rights had occurred that conflicted with our human rights policy. The Group will continue to conduct corporate activities based on respect for human rights.

In FY2021, we evaluated the priority of human rights issues based on the risks assumed for the Group from the two axes of "severity of potential impact on human rights" and "relationship between human rights risk and the company". As a result, the Group identified potential risks related to health and safety and working hours as high. In addition, in an analysis of the responses to the human rights risk survey, approximately 40% of Group companies responded that human rights management in the supply chain is important, indicating the need to promote efforts to respect human rights throughout the supply chain. The results of the evaluation were reported to the outside directors and outside audit & supervisory board members. The received comments and the survey results were disseminated throughout the Group as the priority risks for human rights risks of the Group. We will continue to address priority issues step by step.

The Shin-Etsu Group is actively working to introduce a system to accurately grasp working hours based on computer logs and other information. In addition, we are promoting the development of systems and working environments that enable flexible and highly productive work styles, such as the flextime system and telecommuting. Furthermore, with statutory caps on overtime work hours to be introduced to the construction industry in FY2024, we support the efforts of applicable Group companies in Japan to reduce overtime work.